Greencore shares have been showing signs of recovery in the past week after a dismal few months when they plummeted for a high of 390p to just 290p a couple of weeks ago, before bouncing to the current 315p.

Various reasons have been thrown forward for the modest recovery in the shares - an expected bumper sugar beet campaign, a share buyback, various potential acquisitions - Dalgety (unlikely), Paul's Malt (possible) and Joe White Maltings in Australia (possible).

Whatever about a bumper beet harvest, it will really require some solid news on the corporate front to boost Greencore shares. And on that front, most in the markets would prefer to see Greencore increase its presence in the malting industry. Forecasts of increased beer consumption worldwide - endorsed by Danish giant Carlsberg this week - augur well for the maltsters.

Through Minch Norton and its small Belgian operation, Greencore already has a modest presence in the malting industry. The addition of Paul's would give Greencore a strong presence in Britain, while Joe White is a market leader in the Australian industry.

Either of these will leave Greencore little change out of £70 million, but it would probably be money well spent. An absence of acquisition activity could well see the shares fall back.